OPEC and its allies this weekend agreed to cut production next month by nearly 10 million barrels per day, a move aimed at shoring-up sagging oil prices amid the global response to the novel coronavirus pandemic.
The agreement, led by OPEC's leading member Saudi Arabia, and the organization's chief counterpart, Russia, capped a weekend of furious negotiations involving not only the cartel but the Group of 20. President Trump reportedly helped broker the agreement between the Saudis and the Russians, who had been at odds since Moscow last month declined to renew a production cut agreement with OPEC.
The production cut, about 9.7 million barrels per day, is scheduled to remain in place for two months starting May 1, then begin easing through the summer and fall.
"We have demonstrated that OPEC+ is up and alive," Saudi Energy Minister Prince Abdulaziz bin Salman, referring to OPEC's partnership with Russia and other non-cartel members, told Bloomberg News. "I'm more than happy with the deal."
Non-OPEC nations, especially the developed countries that are part of the G-20, indicated that they will contribute to the agreement by buying oil to fill their countries' petroleum reserves.
Benchmark crude oil prices rose slightly immediately after the agreement was announced Sunday, but they had largely settled to their previous prices by Monday morning. Although the agreement to cut oil production by close to 10 million barrels per day would traditionally amount to an enormous cut, global demand has fallen by as much as 30 million barrels due to the travel restrictions and business shutdowns imposed to slow the spread of COVID-19.
Brent crude, the benchmark for global oil prices and for U.S. gasoline, was fetching about $31 a barrel Monday morning. West Texas Intermediate, the bellwether for U.S. shale oil production, was selling for about $23 a barrel.
Sinead O’Sullivan breaks down Taylor Swift’s genius marketing for The Life of a Showgirl, which just set the record for most albums sold in a single week.
Markets are emerging from a turbulent Q3. Horizon’s Mike Dickson shares insights on interest rates, small caps, and where investors should look in Q4 and beyond
Bambu Ventures's Kyle Pretsch dives into Lemonaid’s $10M buyout, down from 23andMe’s $400M price tag, and what’s next after Chrome Co.’s dramatic pivot.
Former Cisco Systems CEO John Chambers learned all about technology’s volatile highs and lows as a veteran of the internet’s early boom days during the late 1990s and the ensuing meltdown that followed the mania. And now he is seeing potential signs of the cycle repeating with another transformative technology in artificial intelligence. Chambers is trying take some of the lessons he learned while riding a wave that turned Cisco into the world's most valuable company in 2000 before a crash hammered its stock price and apply them as an investor in AI startups. He recently discussed AI's promise and perils during an interview with The Associated Press.
Grove Collaborative’s CEO shares how the company is reinventing everyday goods with sustainability at the core and working toward a plastic-free future.
Atlanta Mayor Andre Dickens shares plans for affordable housing, community-led growth, and why private and public grocery stores could be key to food equity.
Tesla reported a surprise increase in sales in the third quarter as the electric car maker likely benefited from a rush by consumers to take advantage of a $7,500 credit before it expired on Sept. 30. The company reported Thursday that sales in the three months through September rose 7% compared to the same period a year ago. The gain follows two quarters of steep declines as people turned off by CEO Elon Musk’s foray into right-wing politics avoided buying his company’s cars and even protested at some dealerships. Sales rose to 497,099 vehicles, compared with 462,890 in the same period last year.
